Kenya Leads the World in Peer-to-Peer Crypto Trading

Global Crypto Adoption Index 2021 by Chainalysis shows that Kenya tops the world when it comes to peer-to-peer (P2P) trading of cryptocurrencies.

Over 150 countries were polled, including other African superpowers like Nigeria, South Africa, and Ghana.

For the report, a purchasing power parity index, as well as Internet penetration, were taken into account.

These countries’ deteriorating currencies were attributed to the increase in P2P trading. The Kenyan Shilling, for example, has lost 6.3 percent of its value against the US dollar since January. A lot more might be added to this number because the majority of these countries are still dealing with the coronavirus delta variant outbreak.

This is because “many emerging markets experience considerable currency devaluation, forcing residents to buy cryptocurrency on P2P platforms in order to save their investments.”

ALSO READ: Kenya’s Slow Regulatory Response Hindering Cryptocurrency Growth

Apart from the dropping value of their national currency, another reason for the growth is connected to the faster and cheaper method cryptocurrencies enable remittances back home.

According to the Chainalysis analysis, “cryptocurrency allows those residents a mechanism to sidestep those constraints so that they can meet their financial necessities.” Keeping in mind that foreign transactions in Africa might be costly at times.

Previously, it was reported that global cryptocurrency adoption has surged by 880 percent in the last year. Nigeria, Kenya, and the rest of the emerging markets lead this spike, according to our report

The report attributed the rise in crypto acceptance in emerging nations, including Kenya, Nigeria, Vietnam, and Venezuela, to peer-to-peer choices.

A lack of centralized exchanges has resulted in a large volume of transactions on peer-to-peer (P2P) networks. This record was broken by emerging markets despite challenges such as currency devaluation and expenditure restrictions.